In Pictures: 10 New Credit Card Rules

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10 New Credit Card Rules

Want to know how the new credit card law going into effect today will impact consumers? College students will be most affected by the CARD Act, which has measures designed to stop card companies from letting the next generation take on too much debt too soon. But there are many changes intended to make life easier for cardholders of all ages. Here's a look at the key provisions of the new legislation.

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No. 1: Campus Giveaways Banned

In past years orientation day at many colleges meant incoming freshmen could set up their dorm rooms, meet new friends--and load up on whatever free food and goodies credit card companies were using that year to entice coed customers. Now card companies can solicit on campus, but without the freebies.

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No. 2: No Marketing at College Sporting Events

College-related events like athletic contests used to be fertile ground for card company marketers and their bottomless goodie bags. No longer, even if a game is being held off-campus, which is common for top-shelf football and basketball programs.

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No. 3: Restricted Credit for Anyone Under 21

Just got to college and eager to sign up for your first credit card? Better sign up for work-study--or do some serious kissing up to mom and dad. Now under-21s need a co-signer or proof of steady access to cash in order to qualify for a card.

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No. 4: Minimum Payment Disclosures

For those of us who are bad at math, credit card statements will now have to spell out why it costs you more money in the long run to make only the minimum payment required. Your statement will also have to calculate for you a monthly payment for wiping out any debt in a year-and-a-half.

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No. 5: Highest Interest Rates Paid First

Another change aimed at the mathematically challenged: Payments you make are automatically applied to whatever portion of your debt carries the highest interest rate, and thus should be paid off first.

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No. 6: Harder to Raise Interest Rates

Ever signed up for a credit card at a low rate only to have it jacked up after your first couple payments? There's a new regulation designed to prevent that type of bait-and-switch: Card companies now have to wait a year before raising a new customer's rate.

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No. 7: 45-Day Notice of Rate Hikes

A 45-day advance notice of rate increase should keep cardholders from being surprised with a rate hike they weren't expecting.

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No. 8: Universal Default Banned

If you know what "universal default" is, you'll no doubt be glad the CARD Act is doing away with it. Card companies used to be able to raise your rate if it found out you were behind on other credit obligations, like to your gas company. Not anymore.

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No. 9: No Fees for Method of Payment

Card companies can no longer charge fees to customers who prefer to pay their bills by less-than-common means, like by telephone.

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No. 10: Bills Due on the Same Date Every Month

Been getting the feeling your card payment deadline changes from month to month, leaving you perpetually late on your payments? Card companies now have to make the due date the same every month.